We Involve Our Suppliers During Product Development: Sachdeva

Volvo Eicher Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors Ltd (EML), has entered the light and medium duty (LMD) commercial vehicles market by launching 1049. In an exclusive interview, R S Sachdeva, Executive Vice President, Technology, VECV, told Bhushan Mhapralkar about the role played by the components suppliers in its successful entry into the sub 5-tonne trucks segment. He also spoke about the company’s relations with its suppliers who are considered as partners and innovators and about the future plans for them. The editd excerpts:

- Bhushan Mhapralkar

Q: What role do the components suppliers play in technology absorption and ‘Indianisation’ of Eicher vehicles?

Sachdeva: Supplier relation assumes high priority at Eicher, and it is a part of Eicher’s DNA. Our dealing with the suppliers is on fair grounds. We focus on long-term relationships. We ensure good communication with them. Every month we convey to the suppliers what we sold in the previous month, and what is our plan for the next 3 months. We may falter in some of our plans by 5-7%. The information will help them know how the industry is progressing and gear up for the future. Every year we conduct a supplier conference in Indore. Over 800 suppliers attend this conference. Much communication takes place. We get an opportunity to tell the suppliers about our plans and what we would expect from them. We, at VECV, have been sourcing parts from our suppliers for export to Volvo entities, particularly engine parts that go into Euro VI engines.

Q: How does supplier relation help engineer new platforms like the 1049?

Sachdeva: Suppliers have a definite involvement in product engineering. In the Volvo Group, Supplier Involvement in Product Development (SIPD) is particularly strong. This is especially the case in terms of technology. SIPD is about upfront involvement of the supplier. We have mapped and introduced SIPD at VECV. Under SIPD, we have got a completely new product development process. The key critical requirement of this process is that technology development has to happen prior to product development.